Question

Economists make predictions about individual behavior based on the assumption that people exploit opportunities to make themselves better off. The fact that different individuals make different choices when confronted with the same situation implies that this assumption is often violated.

True or False?

Answer 1

This affirmative is FALSE.

Many economists may make predictions regarding individuals behaviors based on the assumption that people will exploit opportunities in order to succeed. However, this assumption is not always true since people, in general, have different views on opportunities, costs and benefits.